Client advisory

VP Bank has a diversified business model with clearly defined business ­segments. The core activity consists in the business with financial inter­mediaries and affluent private clients. The product line is enhanced through comprehensive fund solutions for fund providers, asset managers and management companies. In Liechtenstein and Switzerland, VP Bank offers a broad ­universal banking line for retail clients, small to medium-sized companies and real estate companies.

VP Bank’s client advisors work with clients in the private banking, intermediaries and corporate segments. By assigning client advisors to clearly defined segments, the bank ensures the best possible advisory quality and a focus on the respective needs of clients in each segment. Thanks to numerous synergies between the respective business segments, VP Bank clients benefit from attractive value-added among the products and services. 

For its advisory activity, VP Bank focuses on personalised support, quick decision-making capabilities, agility, flexible and sustainable solutions and a long-term approach. The strong net new money inflows in 2019 were generated by clients across all VP Bank’s segments. The international locations in particular made a substantial contribution to this. 

The quality of the customer service and support is regularly assessed by independent specialists. As part of the “Tops 2020” assessment published by Fuchsbriefe in Germany, VP Bank improved its ranking to 11th in the so-called All-Time Best list. According to the Fuchs Report, the long-term assessment shows which institutions offer their clients the highest-level advisory over the long term. The assessors emphasized the individuality, structured approach, efficient communications and the graphically well-illustrated investment process. With its satisfactory ranking of 11th in the Top 20 of the European tables, VP Bank is among the best asset managers. The independent assessment result demonstrates that we can offer our clients consistently high-quality advisory and also reflects well on the on-going certification of our client advisors. 

VP Bank’s activities revolve primarily around its defined target markets (see “VP Bank’s strategic orientation”, ➔ page 26 ff.). Additional growth potential is developed in other opportunity markets – mainly other regions in Europe. In 2019, the Nordics (Denmark, Sweden and ­Norway) were identified as new target markets. Through our planned cooperation with Hywin Wealth Management, we are looking to develop our activities in the Chinese market. 

VP Bank regularly ascertains its clients’ views and assesses its advisory quality, thereby gaining continuous insight as to how it can adapt its services to satisfy client needs more effectively. Internal processes on the delivery of services are also reviewed and optimised with help from client ­feedback. The bank pays close attention to future needs so that we can provide services that address them now or move in that direction. We constantly solicit client feedback through personal discussions, contact forms on the website and regular client surveys. 

If the event of complaint situations, the bank speaks directly with the clients to find ways to remedy the existing situation and determine the implications for managing the relationship going forward. This approach also satisfies the complaint resolution guidelines of the Liechtenstein Financial Market Authority (FMA). 

In 2019, a client survey was conducted at the Liechtenstein and Swiss sites. The feedback confirmed a high level of client satisfaction, good service quality and the continued importance of personal advisory and support. The information gleaned from the survey is part of a series of measures being implemented in stages. 

The client survey confirmed that VP Bank’s clear strengths include comprehensive client support and the combination of diverse services. Complex client requirements are systematically assessed by taking into account the economic, legal and risk aspects along with operational considerations, and clients are kept constantly informed about the status. 

The bank’s service offerings start with basic services for account and custody management and payments. For private clients, we offer customised asset management and investment advisory, asset structuring, prevention and estate planning, financing and fund solutions. 

In the investment solutions area, VP Bank has a broad range of investment advisory and asset management options. Clients can work together with their client advisor and investment specialists to put together an optimal portfolio that combines their own ideas along with proposals from the Bank. On-going portfolio monitoring ensures com­pliance with the client’s risk profile and specifications. A specialised advisory team offers clients support for their specific individual requirements. 

In the asset management area, clients may choose between mandates for fund-based products and individual securities. They can also determine the frequency of the portfolio adjustments. VP Bank also offers a sustainability mandate that places further emphasis on environmental, social and corporate governance issues. 

The lending business is aligned with the strategic business segments, i.e. intermediaries and private banking. The linkage between investment and financing solutions and the establishment of specialised solutions are key differentiation factors relative to traditional private banks. In the local lending business, VP Bank is very well positioned as a lender to retail and company clients. 

In order to provide comprehensive support for our clients, VP Bank works together with outside specialists. We are thus able to recommend partners to our clients for asset structuring, prevention and estate planning, tax advisory, business advisory and business transactions. 

Financial intermediaries and fund providers benefit from a diverse range of services customised just for them. Along with basic account and portfolio management, custody and order processing services, VP Bank offers special services tailored specifically to intermediaries for investment and regulatory advisory as well as fund solutions. With its “Direct Execution Service”, VP Bank offers direct trading access. 

A broad range of digital solutions for sharing data and information makes VP Bank a leading bank for inter­­mediaries clients. The modern VP Bank e-banking offers independence and security as well as round-the-clock ­electronic access to accounts and securities accounts. The full panoply of features customised for intermediaries, such as user administration capabilities by the interme­diaries themselves, was improved with optimised user ­navigation, new technologies and brand new layout. ­ProLink, the highly regarded intermediaries portal, was also enhanced with new features, such that clients can take advantage of a comprehensive, real-time information platform. A new interface compatible with the Electronic Banking Internet Communication Standard (EBICS) was also launched in order to standardise the sharing of payment transaction data. 

For client advisory, VP Bank relies on personal contacts between advisors and specialists. In so doing, the bank can recognise the more complex client needs while anticipating future ones. 

Digital tools support our client advisors with this process, from the client meeting preparation phase to the execution phase following the meeting. Tablets make it possible to simulate various investment proposals directly during the advisory meeting, make adjustments jointly and place orders. Portfolio adjustments thereby become much more transparent and tangible. It becomes possible to make well-informed decisions even during the client discussions, since the client advisor can provide immediate answers to questions and clarifications. 

In addition to enhancing the transparency of investment proposals through simulations and adjustments, the tablets can also be used to gather the latest information during the period leading up to the client discussion, for example with the on-boarding process initiated directly on the ­tablets. Clients benefit from efficient communications with the bank, and it is no longer necessary to input information manually after the fact. 

The use of digital tools makes it possible to resolve simple and recurring client needs efficiently, regardless of time and place. It also enables the advisors to focus on the more complex client needs during the personal discussions. VP Bank’s new e-banking offers intermediaries and private clients improved and efficient user administration, greater oversight capabilities and new features such as access to market data. The groundwork was also laid for a client portal offering access to market information and services such as payments, account queries, order placement and E-post. 

The ever-changing banking environment requires an ­optimised product and service offering. Our advisory ­concept therefore includes business model adjustments for traditional investment advisory. With our systematic advisory process and the continuous improvements to services, we have laid the foundation for the investment advisory of the future. 

Highly trained client advisors are the foundation for excellent support. In the light of a steady stream of new regu­latory measures, VP Bank trains its client-facing employees accordingly. VP Bank therefore invests continuously in their training and continuing education. In 2019 our client advisors at the Liechtenstein and Swiss sites successfully completed their international certification from the Swiss Association for Quality (SAQ). These measures are further enhanced through on-going training on technical, economic and regulatory issues. 

At 31 December 2019, VP Bank had client assets totalling CHF 47.6 billion, up 14.7 per cent from the previous year. It also held another CHF 6.9 billion in custody assets, ­bringing total client and custody assets to CHF 54.5 billion at the end of the reporting period (2018: CHF 46.7 billion). Overall, VP Bank Group recorded net new client money totalling CHF 2,255 million.

Classification of client assets under management